Amazon Insurance for Sellers in 2027: Requirements, Cost and Deadlines

Amazon's insurance rules are tightening, and sellers who ignore them risk losing listings. Going into 2027, there are two tracks: a sales-based requirement that has existed for years, and a newer, stricter requirement for sellers in what Amazon calls enhanced safety categories. This guide explains who needs coverage, what the policy must say, what it costs, and how to stay compliant. It is based on seller-industry reporting, so confirm the details in Seller Central under Settings, Account Info, Business Insurance before you buy anything.

Does Amazon require insurance for sellers

Yes, in two situations. The long-standing rule applies to sellers whose gross proceeds pass a monthly trigger, reported as $10,000, after which they have 30 days to obtain $1 million in liability coverage from an insurer of their choice. A newer rule, reported to take effect November 2, 2026, requires $1 million coverage for any seller with an ASIN in an enhanced safety category, regardless of sales volume. Reporting says this applies to listings that are already live, not only new ones.

If you are new and small, do not assume you are exempt. Check whether any of your products fall into the categories below.

The enhanced safety categories

Industry coverage lists 11 categories, and Amazon's notice says the list includes but is not limited to its named examples:

1. General household devices, including small kitchen appliances
2. Lithium battery products
3. Personal safety equipment
4. Transport-related products, such as tires
5. Sleep products, such as mattresses
6. Outdoor power and heating equipment
7. Home medical devices
8. Fire-related products
9. Water and marine safety products
10. Children's products
11. Consumable and ingestible products (Amazon's notice also names cosmetics)

If you sell supplements, toys or kitchen appliances, this almost certainly touches you.

What the policy must include

Seller-industry summaries of Amazon's requirements list these terms:

• Commercial general, excess or umbrella liability coverage
• $1 million limits per occurrence and in total
• A deductible of no more than $10,000
• Occurrence-based coverage (with exceptions for certain categories) covering every product in the Amazon catalog
• Amazon.com Services LLC and its affiliates and assignees named as additional insured
• A named insured that matches the legal entity on your seller account exactly
• A carrier with worldwide claims handling

Common reasons certificates get rejected

Mismatches cause most problems: policy dates that differ from what you entered in Seller Central, a business name that does not match your account, or a policy that excludes products you actually sell. Ask your broker to review the certificate against Amazon's requirements before you upload it.

Sellers headquartered in mainland China

Reporting says new policies for sellers headquartered in mainland China must be purchased through the Amazon Insurance Accelerator, a panel of insurers assembled with Marsh. Compliant existing policies may be kept until they lapse, after which renewals go through the Accelerator.

How much does Amazon seller insurance cost

Costs vary by category, revenue, claims history and carrier. Earlier Accelerator quotes reported in industry coverage ranged from $837 to $2,200 per year for sellers with $500,000 to $1,000,000 in sales, but those figures predate the newest changes, so treat them as a rough anchor only. Get at least two or three quotes. High-risk categories such as lithium batteries and ingestibles generally cost more, and some carriers decline them entirely.

Where to buy

You can use an insurer of your choice in most cases, including brokers that specialize in ecommerce. The Insurance Accelerator inside Seller Central offers quotes through partner carriers, which is a convenient starting point even if you buy elsewhere. Make sure whichever route you choose produces a certificate naming Amazon correctly.

Deadlines and what happens if you do not comply

Reporting says affected sellers receive an email and have 45 days to submit proof of coverage before enhanced safety listings can be deactivated. Industry commentary says enforcement specifics are uncertain, but Amazon's wider push on product safety and third-party testing suggests it will be taken seriously. Read your Seller Central notifications weekly, because a missed email is the most common way sellers lose listings.

A practical compliance checklist

• Check Business Insurance in Seller Central for your current status.
• List your ASINs and flag any in the 11 categories.
• Confirm your legal entity name matches your account.
• Request quotes and compare limits, deductible and exclusions.
• Verify Amazon is named as additional insured before paying.
• Upload the certificate and confirm approval.
• Set a calendar reminder 60 days before renewal.

If you are shopping for tools to monitor account health and compliance, see our roundup of the best Amazon seller tools.

Insurance beyond the Amazon requirement

Meeting Amazon's minimum is not the same as being well protected. A general liability policy covers third-party injury and property damage claims, but it does not cover your own lost inventory, a supplier failure, or an account suspension. Many sellers also look at product recall coverage, cyber coverage and business property coverage for stock held in their own warehouse or a 3PL. Ask your broker what is excluded, especially for products made overseas and sold under your brand, since you may be treated as the manufacturer. Also check that the policy covers every marketplace you sell on, because a certificate written only for one channel can leave gaps. Finally, keep a record of supplier documents, test reports and product certifications, since insurers and Amazon both ask for them when a claim or a safety complaint appears.

The GTM angle

A hard compliance deadline is the best kind of outbound trigger, because the buyer already has a reason to act. Insurance brokers, compliance consultants, product testing labs, account management agencies and Amazon-focused accountants can all build campaigns around this change.

Start by segmenting your ICP by category exposure. Sellers in children's products, supplements, lithium batteries and household appliances have the most urgency, and a seller under $10,000 per month in those categories may not realize the rule applies to them. Use the Cruxfinder directory and Amazon seller newsletter audience as context for who is paying attention.

Write trigger-based cold emails that reference the specific category and deadline: "You sell in a category Amazon flags for mandatory $1M coverage. Here is a one-page checklist and a quote comparison." Offer something free and concrete, such as a certificate review, which removes the most common rejection risk. Follow up with a second email around the 45-day window. If you sell to brokers rather than sellers, pitch them the lead flow. Model the economics first with the cold email ROI calculator, and avoid giving insurance advice you are not licensed to give.

Frequently Asked Questions

Do all Amazon sellers need liability insurance?

No, but many do. The long-standing rule is tied to a monthly gross proceeds trigger, reported as $10,000. The newer rule applies to sellers with ASINs in enhanced safety categories at any sales level.

How much coverage does Amazon require?

Reporting says $1 million per occurrence and in total, with a deductible no higher than $10,000, and Amazon named as additional insured.

When does the new requirement start?

Industry coverage reports an effective date of November 2, 2026. Check Seller Central for your own deadline.

Is Amazon seller insurance expensive?

It varies widely. Earlier reported quotes for mid-sized sellers were in the low thousands per year or less, but high-risk categories cost more. Get multiple quotes.

Can I use my own insurer?

In most cases yes, as long as the policy meets Amazon's terms. Sellers headquartered in mainland China are reported to be required to use the Amazon Insurance Accelerator for new policies.

Takeaways

• Insurance is required either by sales trigger or by category, and category rules apply at any volume.
• The policy needs $1M limits, a deductible of $10,000 or less, and Amazon as additional insured.
• Names and dates on the certificate must match Seller Central exactly.
• Act within the notice window to protect live listings.
• Compliance deadlines are strong triggers for outbound campaigns.

Want to reach sellers while the deadline is top of mind? See Cruxfinder's cold outbound service and the free GTM calculators.